Is it Possible to Face Legal Consequences for Leaving a Negative Online Review?

Negative online reviews can not only harm a company’s reputation but also affect individuals who write them.

A man in British Columbia faced a $105,000 defamation lawsuit from a Coquitlam custom stone fabrication company due to a negative Google review he posted.

The man, Hyungdong Lee, was ordered to pay $4,000 in compensation to Pacific Granite Manufacturing Ltd. and its proprietors for implying they lied about an incident where Lee’s car was allegedly damaged by an employee.

Following a hit-and-run crash involving a Pacific Granite employee, Lee confronted the owners, leading to a confrontation and the negative review accusing them of lying.

Despite a lower compensation than sought, Lee was held responsible for the defamatory comments by B.C. Supreme Court Justice Andrew Mayer.

Negative online reviews are now common in Canada, with customers increasingly airing grievances online, according to CFIB Senior Manager of Business Resources Jocelyn Rhindress.

Despite the rise in online reviews, defamation lawsuits have not increased significantly, noted Ottawa lawyer Wendy Wagner, who specializes in defamation and media law.

Wagner explained the distinction between negative reviews and defamation, emphasizing the importance of truthful statements or fair comments to avoid legal repercussions.

Negative Review or Defamation?

Consumers are advised to focus on the overall review score when evaluating businesses online, rather than solely relying on individual negative reviews, Rhindress suggested.

Responding professionally to reviews, both positive and negative, is crucial for managing a business’s reputation effectively, she added.